SAN ANTONIO, April 16 /PRNewswire/ --
Play-By-Play Toys & Novelties, Inc. (Nasdaq: PBYP) today announced that the
holders of its Convertible Debentures have agreed to extend the standstill
period until Monday, April 30, 2001 in order for the Company to secure the
senior lender's consent to certain terms of the agreement between the Company
and the holders of the Convertible Debentures to restructure and extend the
final maturity of the Debentures. The Company previously announced that it
had reached an agreement in the form of a term sheet with the holders of its
Convertible Debentures to restructure and extend the final maturity of the
Debentures until December 31, 2002. The agreement is subject to the payment
by the Company of past due principal and interest due under the Debentures.
As a result of defaults outstanding under the Company's senior credit
facility, the Company is prohibited from making payments of principal or
interest to subordinated creditors without the consent of its senior lender.
For the recently reported quarter ended January 31, 2001, the Company violated
net worth covenants of its senior credit facility. The Company is also in
default in the payment of principal and interest due under the Debentures
which has resulted in the violation by the Company of certain cross-default
covenants of its senior credit facility. The Company, the holders of the
Debentures and the senior lender remain in discussions relative to the
principal and interest payment provisions of the agreement. There can be no
assurance that the senior lender will approve the payment by the Company of
past due principal and interest due under the Debentures, or that the Company
will be able to satisfactorily restructure the Debentures. If the Company is
unable to secure the senior lender's approval of the payments, or fails to
restructure and extend the Debentures, all amounts would be due and payable
and the Company has insufficient funds to satisfy such obligations.
Play-By-Play Toys & Novelties, Inc. designs, develops, markets and
distributes a broad line of quality stuffed toys, novelties and consumer
electronics based on its licenses for popular children's entertainment
characters, professional sports team logos and corporate trademarks. The
Company also designs, develops and distributes electronic toys and
non-licensed stuffed toys, and markets and distributes a broad line of
non-licensed novelty items. Play-By-Play has license agreements with major
corporations engaged in the children's entertainment character business,
including Warner Bros., Paws, Incorporated, Nintendo, and many others, for
properties such as Looney Tunes(TM), Batman(TM), Superman(TM), Garfield(TM)
and Pokemon(TM).
Except for the historical information contained herein, the matters
discussed in this release are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially,
including, without limitation, risks associated with the Company's liquidity
and capital resources, relationships with licensors, competitive and economic
factors, price changes by competitors, ability to manage growth, ability to
source products, international trade relations, management of quarter to
quarter results, increase in costs of raw materials, timing of technological
advances by the Company and its competitors, lack of acceptance by consumers
of new products, and the other factors discussed in the "Risk Factors" section
of the Company's Form 10-K dated July 31, 2000. Updated information will be
periodically provided by the Company as required by the Securities Exchange
Act of 1934.

SOURCE Play-By-Play Toys & Novelties, Inc.

SAN ANTONIO, April 16 /PRNewswire/ --
Play-By-Play Toys & Novelties, Inc. (Nasdaq: PBYP) today announced that the
holders of its Convertible Debentures have agreed to extend the standstill
period until Monday, April 30, 2001 in order for the Company to secure the
senior lender's consent to certain terms of the agreement between the Company
and the holders of the Convertible Debentures to restructure and extend the
final maturity of the Debentures. The Company previously announced that it
had reached an agreement in the form of a term sheet with the holders of its
Convertible Debentures to restructure and extend the final maturity of the
Debentures until December 31, 2002. The agreement is subject to the payment
by the Company of past due principal and interest due under the Debentures.
As a result of defaults outstanding under the Company's senior credit
facility, the Company is prohibited from making payments of principal or
interest to subordinated creditors without the consent of its senior lender.
For the recently reported quarter ended January 31, 2001, the Company violated
net worth covenants of its senior credit facility. The Company is also in
default in the payment of principal and interest due under the Debentures
which has resulted in the violation by the Company of certain cross-default
covenants of its senior credit facility. The Company, the holders of the
Debentures and the senior lender remain in discussions relative to the
principal and interest payment provisions of the agreement. There can be no
assurance that the senior lender will approve the payment by the Company of
past due principal and interest due under the Debentures, or that the Company
will be able to satisfactorily restructure the Debentures. If the Company is
unable to secure the senior lender's approval of the payments, or fails to
restructure and extend the Debentures, all amounts would be due and payable
and the Company has insufficient funds to satisfy such obligations.
Play-By-Play Toys & Novelties, Inc. designs, develops, markets and
distributes a broad line of quality stuffed toys, novelties and consumer
electronics based on its licenses for popular children's entertainment
characters, professional sports team logos and corporate trademarks. The
Company also designs, develops and distributes electronic toys and
non-licensed stuffed toys, and markets and distributes a broad line of
non-licensed novelty items. Play-By-Play has license agreements with major
corporations engaged in the children's entertainment character business,
including Warner Bros., Paws, Incorporated, Nintendo, and many others, for
properties such as Looney Tunes(TM), Batman(TM), Superman(TM), Garfield(TM)
and Pokemon(TM).
Except for the historical information contained herein, the matters
discussed in this release are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially,
including, without limitation, risks associated with the Company's liquidity
and capital resources, relationships with licensors, competitive and economic
factors, price changes by competitors, ability to manage growth, ability to
source products, international trade relations, management of quarter to
quarter results, increase in costs of raw materials, timing of technological
advances by the Company and its competitors, lack of acceptance by consumers
of new products, and the other factors discussed in the "Risk Factors" section
of the Company's Form 10-K dated July 31, 2000. Updated information will be
periodically provided by the Company as required by the Securities Exchange
Act of 1934.
SOURCE Play-By-Play Toys & Novelties, Inc.